Good afternoon. The Reserve Bank of Australia has held rates at 3.85%, in a surprise decision that denies further mortgage relief for millions of Australian households. The decision came as a shock to financial markets and a large majority of experts who were sure the RBA board would cut interest rates for a second straight meeting.
Explaining why the bank did not follow through with market expectations of a 0.25% cut, the RBA governor, Michele Bullock, said economic conditions “remain uncertain” and its board was waiting to confirm whether inflation was still on track to reach 2.5%. For the first time in the bank’s history, the monetary policy board’s votes on the cash rate decision were made public, which revealed three of the nine members voted to cut rates today.
